PROVIDENCE – Providence Equity Partners has ditched plans to sell Phones4U, a U.K.-based mobile phone retailer, The Press Association reported on Wednesday.
Providence Equity bought a 75 percent stake in the company four years ago from billionaire owner John Caudwell.
The Sunday Times reported in September that the private equity firm was “considering” several unsolicited offers.
The business is estimated to be worth between £700 million to £800 million, approximately $1.0 billion to $1.2 billion. Providence Equity paid £1.46 billion in the 2006 deal, which also included the 20:20 phone distribution arm.
“Following the receipt of a number of unsolicited expressions of interest for Phones4U, Providence [Equity] conducted a process to explore strategic options for the company. After concluding this process, Providence has determined it can realize the most value through its continued ownership of Phones4U,” said a spokesman to The Press Association.
Phones4U is expected to increase its underlying earnings by 23 percent in 2010 to £130 million, the U.K. news provider said, noting that the retailer is still weighed down by £300 million in debt.
